USDMXN made a nice and clear bearish reversal down from 20.960 level in June, which is an indication into which direction the trend is going. We see it going bearish, ideally unfolding a bigger five-wave decline with red waves 1) and 2 already completed. We also know that nothing moves in straight lines so be aware of temporary pullbacks that may join the party; first minor pullback is wave 2 following a five-wave drop from 20.1974 level which can look for resistance and a turn lower around the 19.557 area.
Also keep in mind that we are looking bearish as long as price keeps trading below the upper channel resistance line.
USDMXN, 4h
